Question: Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability Elra,s) E(B,s) Recession 0.1

Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability Elra,s) E(B,s)

Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability Elra,s) E(B,s) Recession 0.1 -0.03 0.04 Normal 0.5 0.12 0.07 Expansion 0.4 0.2 0.11 The expected return on the market portfolio is 0.06 and the risk-free rate is 0.02. Part 1 Attempt 2/10 for 10 pts. What is the standard deviation of returns for stock A? 3+ decimals Submit Part 2 Attempt 1/10 for 10 pts. What is the standard deviation of returns for stock B? 4+ decimals Submit Attempt 1/10 for 10 pts. Part 3 What is the beta for stock A? 2+ decimals Submit "Attempt 1/10 for 10 pts. Part 4 What is the beta for stock B? 2+ decimals Submit

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